Deutsche staff fear flat bonuses

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Staff in Deutsche Bank's fixed income, treasury and foreign exchange division are bracing themselves for disappointing news on the bonus front despite achieving record profits last year.

Insiders claim the division made bumper profits, which were about three times higher than those of the previous year.

However, they expect departmental bonuses will not reflect this as the German bank will be forced to pay out hefty guaranteed bonuses to colleages in the separate corporate finance department.

One insider claimed that the situation is unlikely to change next year as many of the corporate financiers' guaranteed salaries and bonuses do not run out until 2003.

There is growing resentment within the bank at the bonus situation because the corporate finance and equity markets divisions have not been as profitable as fixed income.